Factoring Your Freight Bills for Fast Cash & More

Factoring Your Freight Bills for Fast Cash & More

Accutrac Capital 26-Jun-2013 0 Comments

There are many reasons that might prompt a trucking business owner to decide to use invoice factoring, also known as invoice discounting. These can include such things as:

  • a trucking business that's experiencing rapid growth where cash flow just can't keep up
  • a large base of good creditworthy customers that insist on extended payment terms
  • a trucking business that's been turned down for funding by a bank or traditional lender
  • a business transition that requires cash to fund it
  • a trucking and freight business recovering from a tough financial year

In all these examples, cash flow becomes a problem, but traditional financing isn't always possible or desirable.

Trucking businesses choose invoice factoring for their freight invoices to improve cash flow without incurring additional debt. It's an ideal way to create immediate cash, usually within 24 hours of issuing an invoice.

And then some!

In addition to providing fast cash to keep your trucking business healthy, invoice factoring (invoice discounting) your bills of lading offers these additional benefits:

Back office accounts receivable work done for you: Many small to medium-sized trucking businesses struggle with managing their accounts receivable. Poorly managed receivables can have a huge impact on available cash flow. That's especially true when business is in a growth spurt and invoicing and accounts receivable follow-up take a back seat to "getting the job done". The back-office work usually associated with accounts receivable management is taken care of for you when you factor your invoices. That takes a huge load off the shoulders of accounting staff and business owners who might otherwise get bogged down with chasing after receivables.

Access to tried-and-true accounts receivable processes and online tools: Factoring companies are experts in accounts receivable. You gain the advantage of best-in-practice processes that keep your accounts receivable managed efficiently and professionally. A professional factoring company, like Accutrac Capital, offers secure online tools that make it easy for you to track cash flow, whenever it's convenient for you; 24/7.

Expert advice on extending credit to customers: When you work with a professional factoring company, like Accutrac, you can count on their expert advice on credit limits and terms you should extend to new customers. They'll even perform the initial credit check for you.

An impartial third party to professionally follow-up on late payments or short payments: When you put your sweat and blood into running your trucking business, it's easy for a business owner to get emotional when customers are late with payments and cash is tight. But, there's no place for emotion in the follow up process. A factoring company will objectively and professionally follow up for you, increasing the chance your invoice will be paid sooner, while maintaining a positive relationship with your customer.

For more information about the many benefits of factoring for your trucking and freight business, visit www.accutraccapital.com.

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